Chronological coverage updated 3rd October 2026 22:00.
Update 1 · 3rd October 2026
Kemi Badenoch Vows to Abolish £100,000 Childcare Cliff Edge
Conservative leader Kemi Badenoch has vowed to eliminate the childcare earnings cliff edge for parents earning above £100,000, calling the policy absurd. Speaking on the first day of the party's conference in Birmingham, Badenoch stated that the system created under the previous Tory administration punishes parents for advancing their careers.
Cityam reportedly quoted Kemi Badenoch (Conservative Party leader) as saying: “Conservatives believe that you shouldn’t be punished for working more, but this childcare cliff edge does exactly that”.
An estimated £700 million annual cost to scrap the £100,000 childcare cliff edge, with nearly 12,000 parents deliberately capping their income below the threshold — according to Centre for the Analysis of Taxation.
Distancing from previous administration
The policy shift builds further distance between current Tory leadership and Rishi Sunak's administration, which lost the 2024 general election. Former Chancellor Jeremy Hunt created the cliff edge when introducing state-funded 30 hours of free childcare for under four-year-olds for parents earning under £100,000 in March 2023.
Cityam reportedly quoted Kemi Badenoch (Conservative Party leader) as saying: “It is absurd that earning just one extra pound can leave a family thousands of pounds worse off. No one should be turning down a promotion or a pay rise because they literally cannot afford to earn more.”.
Funding details and public sector cuts
To finance the £700 million annual cost, the Conservatives plan to remove the cliff edge for tax-free childcare as well. Party officials stated the expenditure would be covered by reversing workforce expansion across non-departmental public bodies.
Estimated savings of £1.6 billion by 2030 from reducing public servants in arms-length bodies including the Environment Agency and Arts Council England.
Shadow chancellor Andrew Griffith emphasized that the existing earnings boundary hindered career progression and resulted in parents working fewer hours overall.
- The Conservatives intend to abolish the £100,000 income boundary that deprives families of free childcare.
- Independent analysis indicates roughly 12,000 parents intentionally restrict their earnings below £100,000 to retain childcare benefits.
- The £700 million policy cost would be offset by reducing public sector headcount in non-departmental agencies.